Ethereum has been outperforming other major cryptocurrencies since mid-December.

However, the second largest cryptocurrency has failed to keep up with the recent bullish movements.

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A surge took place across the market yesterday which was led by Litecoin initially appreciating over 10% and other major cryptocurrencies then following suit.

Ether failed to react bullishly to these conditions and did not even manage to surpass Saturday’s daily high.

Ether 4-Hour Chart – Source: Tradingview.com

A few reasons may be driving this underperformance.

Those with a bullish outlook would argue that price is consolidating before continuing its upward movements.

However, Bearish patterns have also been forming.

A head and shoulders forming on the four-hour chart would indicate the price is setting up to reverse from here.

If price can continue to increase from here, the key level to monitor is $170.

This was an area of liquidity during the mid-November bearish fall. Price consolidated between $170 and $180 before continuing its bearish decline.

Seller liquidity and resistance would be expected to come into play if the price rises to this point.

To the downside, the key level to monitor is $140.

This was both a significant resistance point during Ethereum’s recent upward movements, and it was also a prior area of consolidation.

Key Takeaways:

After outperforming since mid-December, ether has begun underperforming.

There could be a number of potential reasons driving the underperformance. A consolidation before continuing upward movements would be the bullish viewpoint. The head and shoulders would be the bearish viewpoint.

Key levels to monitor are $170 to the upside and $140 to the downside.

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After discovering bitcoin in 2015, John fell down the cryptocurrency rabbit hole and was swallowed whole. He made the move to lovely Lisboa at the start of 2018 and started working with cryptocurrencies and blockchain full-time.